Good afternoon and welcome to HotCopper’s Market Close, I’m Jonathon Davidson.
It was another red day for the bourse as sentiment on Wall Street sours in what’s looking like a market-wide belief the S&P 500 may not be able to keep notching all-time highs. The US VIX index has been pointedly higher since Donald Trump said he will place tariffs on Canada and Mexico, as always, when America coughs the world catches a cold. With that said, US futures are pointing towards a modestly green Tuesday session.
Looking at sectors, Utilities was the top gainer for the second day in a row, up 1.6%. APA group continued a second day of gains following its Monday earnings; utilities was followed by consumer staples, up a comparatively small 0.3%.
Consumer discretionary was the biggest faller, down -2.7%, driven in part by Domino’s disappointing results – more on that in a moment.
Looking at companies in the green,
HotCopper fintech favourite Zip CO staged a 13.6% jump on Tuesday as its earnings report showed earnings were up nearly 120% versus the prior corresponding period and bad debts on the company’s books receded. Zip last traded at $2.76.
Meanwhile, Nine Entertainment notched a 4% gain despite some earnings metrics looking worse for wear, especially as revenue from Facebook owner Meta hit the books. But the company’s recent news it’s received a buyout offer for property website Domain continues to buoy sentiment; shares closed at $1.70.
Elsewhere, Australian energy supermajor Woodside staged a 2.7% climb at close despite posting earnings losses on the back of post-COVID lower oil prices. While that might have been a bummer, the stock is paying out a dividend and for all intents and purposes remains robust. Woodside shares closed just under $24.10 cents per share.
And as for the reds,
Domino’s Pizza was slammed as shares fell -10.5% on the revelation the company has posted its first loss in nearly two decades. Restructuring costs were to blame, earlier this year, Domino’s highlighted its plans to shut down stores in multiple countries where a value pepperoni just isn’t spicy enough for consumers. Shares closed at $28.80 per share.
Meanwhile, ongoing construction sector pain saw John Lyngs Group staged a whopping -35% decline after it was forced to downgrade FY25 guidance. The company pointed to a “challenging operating environment” and also blamed benign weather for a reduced volume of claims, as well as delays to US projects. Shares closed at $2.45 per share.
Finally, Viva Energy also got slammed -27% as it revealed profits after tax dropped 20% in the first half of FY25. Notably, the company blamed black market tobacco for a drop in service station revenues, as well as inflationary pressures. The company also cited ongoing macro headwinds – not what investors wanted to hear. Shares closed at $1.76 per share.
That’s Market Close for Tuesday from HotCopper, I’m Jonathon Davidson, have a great night and we’ll see you tomorrow.